Ocean Shipping Trouble With New Fuel
From January 1, 2020, the World Maritime Organization (IMO) stipulates that all ships must use marine fuel with a maximum sulfur content of 0.5% compared to the current limit of 3. 5%.
In compliance with IMO regulations, shipping lines have converted to new fuels and implemented fuel surcharges since January 1, 2020. However, this surcharge is only shared with shipping lines, but cannot cover operating costs. Not to mention, the shipping company has to spend a lot of money to replace some spare parts and machinery components such as injectors, rings, etc. to match the new fuel.
In the first months of the year, transportation activities were also seriously affected by the impact of the Covid-19 epidemic, causing a sharp drop in cargo volume and freight rates. The above decrease made the shipping line even more miserable when the cost of using new fuel caused the ship's operating costs to increase, and the level of compensation for losses also "escalated".
Difficulties at the time of switching to new fuels for shipping companies also come from the political conflict between the US and Iran, causing the world price of improved FO oil to skyrocket to more than 800 USD/ton, twice as much as natural fuel. old data and about 1.4 times higher than the price of improved FO oil at the time of stabilization. Although that sky-high price only lasted for a few days, it made the cost of buying fuel for transport enterprises to reach huge levels.
Facing the situation of insufficient revenue and expenditure in transportation activities, representatives of Vosco and Gemadept both affirmed that the new fuel surcharge for goods will certainly continue to be raised.
In order to ensure the effective implementation of IMO regulations, the Vietnam Maritime Administration has continuously issued documents to urge the port authorities to promote propaganda and send early warning letters about compliance with the 0.5% sulfur content threshold for ship owners. , ship management and exploitation companies, captains of Vietnam and abroad operating in seaport waters under its management.
